economy
The SpaceX IPO made Musk a trillionaire. The old rules of capitalism no longer apply
The economic principles taught in school aren’t as relevant as hype, connections and total, arbitrary control
TL;DR
- Elon Musk is reportedly the world's first trillionaire after SpaceX's IPO on the Nasdaq.
- SpaceX's market valuation reached approximately $1.77tn, raising Musk's net worth into the trillions.
- The article argues that capitalism is now based on hype, connections, and arbitrary control, not traditional economic principles.
- SpaceX's stock was priced high, despite consistent negative profitability and unmet goals.
- A deal between SpaceX and Musk's AI startup, xAI, is highlighted as a self-serving transaction.
- Brendan Carr, FCC chair, is cited for approving SpaceX regulatory requests, leading to dominance in low-Earth orbit satellites.
- Musk will have total control over SpaceX, with his shares holding significantly more voting power than public shares.
- Changes to stock index rules, such as Nasdaq 100's 'fast entry' rule, will automatically tie retirement savings to SpaceX's market value.
- Insiders may be able to sell shares sooner than usual, potentially profiting before any market downturn.
- The article suggests this IPO could lead to a redistribution of wealth from the public to Musk and his associates.